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The U.S. has taken first place in terms of importing IT services from Kazakhstani companies, according to the country’s Ministry of Digital Development. The U.S. accounted for 8.71% of the entire IT exports by Kazakhstan over the first six months of 2023.

Ireland and the UAE have been ranked second and third with shares of 8.64% and 3.67%, respectively. Among other importers of Kazakhstani IT services are Cyprus (2.65%), Russia (1.72%), Spain (1.54%), the Netherlands (1.51%), the U.K. (1.09%), Germany (1.02%) and Canada (0.19%).

The vast majority of Kazakhstani IT businesses (1,342) are registered with Astana Hub. Part of them...

Earlier this year, I talked about the telecommunication business line within the bigger business of Freedom Holding Corp. (FRHC). Now, it’s time to take a closer look at this incredibly important project for the entire group and see what resources will be allocated for delivering the project and why we have chosen a certain format for its financing.

The current trend in the global market that we have noticed is that the borderline between telecommunication operators and banks is fading. This synergy is similar to what has happened between banks and brokerage companies. Every successful digital bank is transforming into...

President Kassym-Jomart Tokayev has signed an edict that makes heads of central and regional executive bodies and state companies liable for the investment climate in Kazakhstan, according to the Akorda.kz website.

From now on, ministers, local governors and heads of state-owned companies will be responsible for delivering decisions by the Investment Headquarters, which includes the prime minister, first deputy prime minister, ministers, heads of the Samruk Kazyna and Baiterek funds, the National Entrepreneurs Chamber Atameken and the national company Kazakh Invest.

In turn, the chair and members of the Investment Headquarters will be responsible for improving the investment climate and...

Arsen Tomsky, CEO and founder of inDrive, an international ride-hailing service that operates in 40 countries, has become a Kazakhstani citizen, the company said in a statement.

What happened? Arsen Tomsky has obtained Kazakhstani nationality and thanked the country’s government for their trust.

«I have obtained Kazakhstani nationality. I want to express my gratitude to the country’s leadership for their trust and invitation to come to Kazakhstan. I also want to say thank you to all of Kazakhstan and its people for becoming the second home for inDrive,» Tomsky said during the Alternativa Film Awards.

KazTransOil, a subsidiary of KazMunayGas, has revealed its plan to raise the tariff for the transit of Russian oil via the Kazakhstani sector of the Tuymazy-Omsk-Novosibirsk-2 pipeline (TON-2) by 20.9% from about $9.33 to $11.28 per ton for 1,000 kilometers (VAT excluded) starting from 2024.

«Starting from January 1, 2024, the tariff for KazTransOil services on the transit of Russian oil via the TON-2 pipeline that also goes through the territory of the Republic of Kazakhstan will be at $11.28 per one ton for 1,000 kilometers (VAT excluded). The director general of KazTransOil has approved the...

The Ministry of Transport of Kazakhstan has lifted all restrictions that prevented foreign airlines from flying to different cities in Kazakhstan. The Civil Aviation Committee is now expecting that the cost of air tickets will go down.

What happened? Foreign airlines were given the right to fly to big Kazakhstani cities without limitations. The Ministry of Transport has amended its order on introducing the open skies regime and lifted a previous limitation that used to be applied to foreign airlines.

«Foreign airlines have received the right to fly in a range of Kazakhstani airports with no...

On November 28, the Ministry of Finance of Kazakhstan acquired 51,625,495 common shares from KazMunayGas (KMG) for $1.1 billion or $23.17 per share. As a result, the ministry’s stake in the company has increased from 7.69% to 16.15%, KMG said in a statement.

In turn, Samruk Kazyna reported that its share in the company has decreased from 79.73% to 71.27%. At the same time, in early November, the National Bank announced that it had transferred $1 billion from the National Fund and allocated that money for purchasing KMG shares. The ministry plans to acquire the national oil company’s stock for...

According to the World Bank, the organizational structure of the Baiterek holding isn’t transparent enough and its ability to produce influence on the economic growth and creation of effective financial markets is limited. The holding also doesn’t do much to attract private capital. To change the situation, the World Bank suggests reforming the organization.

Currently, Baiterek controls eight development institutes responsible for certain industries including agriculture, construction and housing sectors. The holding also controls entities such as Qazaqstan Investment Corporation, Development Bank of Kazakhstan, DAMU Entrepreneurship Development Fund and Kazakh Export, an export insurance company. 

Micro, small and medium-sized businesses...

In November, Kazakhstan reported 10.3% inflation compared to 10.8% in October year-on-year or 1% in November, and 0.7% in October month-on-month, according to the Bureau of National Statistics.

Food prices have risen by 9.2% over this year or 10.4% in October year-on-year; non-food prices rose by 9.9% over the year and 11.1% in October year-on-year and paid services rose by 12% over the year and 11% in October year-on-year.

In November 2023, prices grew by 37.3% compared to November last year. For instance, mineral and table water prices rose by 19.8%; preserved milk –18.4%, heat-treated milk –15%, fruits and vegetables...

According to Nurlan Ospanov, head of the Kazakh Grain Union, Kazakhstani farmers can find themselves in a vulnerable position as they continue to struggle to find buyers for all the off-grade grain they have produced.

«Our potential in terms of grain exports is limited. We have China and Central Asia and we won’t supply grain any farther because it would require subsidizing transportation costs. Otherwise, it would be impossible to enter any new markets. That is why we are always talking about our traditional markets,» the head of the grain union said.

As Ospanov noted...

According to the Situational-Analytical Center of Fuel Energy Complex, oil output at the Karachaganak oil field has declined by 34% to 23,800 tons per day over the past several days.

«Karachaganak Petroleum Operating (KPO) reported a decline in oil output right after Tengizchevroil and the North Caspian Operation Company (NCOC) did so. The decline in production was caused by a Caspian Pipeline Consortium decision to stop oil loading operations due to bad weather in the port of Novorossiysk. On November 29, KPO reported a 34% decline in oil output from 36,000 to 23,800 tons per day...

Over the first nine months of this year, KAZ Minerals, a copper company, produced 301,200 tons, which is a 7% increase over the same period last year.

«Over the first nine months of 2023, KAZ Minerals produced more than 300,000 tons of copper, a 7% increase over the same period last year. We have achieved this goal thanks to the additional capacity of the second advanced enrichment facility in Aktogay,» the company said in a statement.

In addition, the company also increased production of zinc in concentrate by 24% to 36,400 tons as extraction took...

The Internal Ministry of Kazakhstan suggested prohibiting the issuing of Individual Identification Numbers (IIN) to foreigners through the e-government website. The ministry wants foreigners to visit Public Service Centers and file their applications in person.

What happened? The Ministry of Internal Affairs of Kazakhstan has published a draft document with changes to the rules for «forming and correcting of individual identification numbers to foreigners and stateless people who are temporarily staying in Kazakhstan.»

If the document is approved, foreigners and stateless people will be forced to file an application to form an IIN by appearing at a nearby Public Service...

The Agency for Regulation and Development of the Financial Market (ARDFM) of the Republic of Kazakhstan wants to amend the rules for disclosing information about transactions between companies managing investment portfolios and insiders, according to the legalacts.egov.kz website.

The new version of the rules is going to require brokers, dealers and managing companies to report to their boards about all transactions with insiders as soon as such information becomes available. At the same time, a risk managing division must obtain this information each month. The companies will be obliged to count such transactions if the amendments are approved.

The explanatory...

Kazakhstan is going to borrow $350 million from the Asian Development Bank (ADB) and the Asian Infrastructure Investment Bank (AIIB) to facilitate its national economy to rebound from consequences caused by the COVID-19 pandemic that officially ended on May 5, 2023. In particular, the country’s government wants to spend this money on reforming the system of budget management and the financial sector in Kazakhstan, according to the AIIB website.

The country’s application passed through conceptual evaluation on November 9, 2023. The deal is expected to be approved on December 14, while the loan itself must be closed by the end...

The Prosecutor’s Office of the Ulytau region has protected the rights of a Chinese investor after local fiscal authorities almost paralyzed the operation of Mezgilder Qushteri, a company that is constriction a wind power station worth $163 million, according to the press service of the law enforcement agency.

What did the fiscal authorities do? As the Prosecutor’s Office reported, fiscal authorities blocked transactions of the company’s banking account and even requested the court to cancel the state reincorporation of a legal entity, even though the company is located at the same address where it has been registered.

The country’s health authorities have deployed more than 3,500 hospital beds for those who contracted measles, although the number of cases continues to grow. About 30 children, including newborn infants, were admitted to intensive care units.

What happened? Health Minister Ms. Azhar Giniyat disclosed information on the situation with measles in the country during a cabinet meeting. According to the official, 17,687 measles cases have been reported so far. Children under 14, most of them unvaccinated, accounted for more than 82% of the disease cases.

«Among those who have been admitted to intensive care units are...

Since the beginning of this year, the goods turnover between Kazakhstan and China has grown by 24%. This figure was revealed during a meeting between Prime Minister of Kazakhstan Alikhan Smailov and Vice Premier of China Ding Xuexian who came to Astana on an official visit.

«Over the past ten months, the trade between our countries has grown by 24%. I think this is a good tempo that can help us to reach $40 billion in goods turnover, a goal that was set by the leaders of our countries,» Smailov said.

He also noted that...

A special-purpose committee of Zhogorku Kenesh, the parliament of Kyrgyzstan, has approved a draft law on changes to the national flag of Kyrgyzstan, according to Azattyq. The document was initiated by deputies who don’t like the current version of the flag with a picture of the sun that resembles a sunflower.

What happened? The parliament’s committee on constitutional legislation, state structure, litigation issues and procedures has approved a draft law on introducing changes to the national flag. Initiators of the document are Speaker of Zhogorku Kenesh Nurlanbek Shakiev and MP Ulan Primov.

What is the reason for changing the flag?

Venture investment funds from the U.S. are reluctant to invest their money into IT startups from Central Asia, the Caucasus and Eastern Europe because of their proximity to Afghanistan, Russia, Iran and China, according to Anatoly Motkin, president of StrategEast, an organizer of The StrategEast State and IT Eurasian Forum.

Motkin believes that the weakness of the IT export and brain drain are some of the most acute problems for Central Asia, including Kazakhstan. He is calling for countries in the region to pay more attention to countries of the Persian Gulf as they are less conservative than the U.S...

The government of Kazakhstan plans to double the size of the national economy to $450 billion by 2029. This goal was disclosed by Prime Minister Alikhan Smailov during a meeting of the Foreign Investors Council (FIC).

What did the prime minister say? According to the press service of the prime minister, the government is going to attract at least $150 billion in foreign investments by 2029.

«We are inviting our foreign partners to invest in projects in Kazakhstan,» Smailov said.

As the press service reported, the meeting included representatives of companies such as Ernst...

According to La Tribune, France wants to sell Rafale fighter aircraft to Kazakhstan and Uzbekistan.  A source the newspaper talked to said that the two countries are interested in the deal. However, the Ministry of Defense of Kazakhstan denied this information.

Why does France want to sell its fighter aircraft? According to several people familiar with the matter La Tribune has cited, France wants to sell Rafale fighter aircraft by Dassault Aviation to Kazakhstan and Uzbekistan in order to deepen bilateral relations with these two countries.

«This was the main purpose of Emmanuel Macron’s visit to...

TipTopPay, a payment company from Singapore, announced that it has acquired a 100% stake in CloudPayments Kazakhstan, a Kazakhstani online payment service for businesses. No details about the financial terms of the deal have been provided.

Tiang Wong, a managing partner of TipTopPay, has commented on the deal.

«We are happy to enter the market of Kazakhstan, the leading economy in Central Asia with a high level of digitalization and fast-growing e-commerce. All of this provides good opportunities for an online payment business. I am convinced that the advanced payment system by CloudPayments has a promising...

According to KazMunayGas, a national oil company in Kazakhstan, over the first nine months of this year, the company’s revenue declined to $13.4 billion or by 10.2% compared to the same period last year.

The net profit of KMG has decreased to $2.095 billion over the period from January to September compared to $2.532 billion over the same period last year (-18.3%). EBITDA dropped by 15.8% to $3.7 billion and cash flow declined by 53.4% to $1 billion, while capital expenditures of the company, in contrast, have risen by 72.1% to $1.1 billion. KMG’s overall debt declined by 3.2% to...